captioned by the national captioning institute --www.ncicap.org-- >> live from berlin, this is the journal. >> here's a look at what's coming up. >> the u.s. heading towards its fiscal cliff. the president reaching out to congress. >> the german parliament passes a disputed child care benefit. >> the day of the wall came down. evens that changed everything. >> in less than two months, the

u.s. will enter the perfect economic storm known as the fiscal cliff. a combination of tax increases and budget cuts could send the united states back into recession. >> barack obama back at work after his election reached out with republicans today saying he wants to reach a solution but only f the ridges are asked to give more. >> i'm open to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenge, but i refuse to accept any approach that is not balanced. i'm not going to ask students and seniors, middle-class families, to pay down the entire deficit while people like me, making over $250,000, are not asked to pay one dime more in taxes. i'm not going to do that.

"the very clear word from the newly elected president. what do you think? you have the president inviting congress to the white house next week. is this going to be the meeting where we avoid the fiscal cliff? >> i don't think so. i think republicans and democrats are going to come together to the white house and they will begin their negotiations. this will take a while. it will take a few weeks. democrats and republicans are determined to avoid the fiscal cliff and they both know how important it is. if they do not find a compromise, this would mean a new recession here in the u.s. it would be bad news for the u.s., the rest of the world, and the unemployment rates may jumped to 9.1%, 9.2%. it would be a disaster. there is a new atmosphere to come and other, but it will be

interesting what sort of compromise. >> you say there is a new atmosphere. republicans are licking their wounds after the election but they still control the house. how willing are they to compromise? >> at your right. there is some soul-searching going on in the republican and party right now. they are asking themselves why? the tea party says they probably have not been a conservative enough and moderate republicans say that they have been too conservative. that's the reason why they lost the election. there's a lot of soul-searching going on in the republican party and there is a new willingness to compromise. of course the republicans do not want higher taxes on anyone in the u.s. right now, so it will be interesting what kind of compromise they will find. >> thank you very much.

>> european markets are continuing to closely track the events in the united states. here is this summary of the friday trading session from the french stock exchange. >> barack obama was the main points of interest here and also on this last trading day of the week. people looking at what he has to say on avoiding the fiscal cliff. people were glad that burst that he was reelected and that helped him, but toward the end of the week, there were doubts that barack obama would achieve the kind of compromise needed. the dax down 2.5%. it's not quite as bad at the end of the day. there was a news from the u.s. consumer that the economy is picking up. and consumers in the united states, the confidence level is up the highest level it has been in five years. >> we will stay for a look at

the numbers in the dax. down by 0.6% on the final trading day of the week. across the atlantic on wall street coming the dow jones also flat. the euro trading at a value of $1 u.s. -- u.s. $1.2712. >> the first round of budget talks have failed to produce an agreement. european parliament is pushing for a 7% increase in spending and more money for a supplementary budget this year. germany, france, and britain want to limit increases to less than 3%. the negotiations will continue next week. >> more business news coming later in the show including economic and is from china and the once in a decade leadership change. the strongest european economy

is beefing up their welfare state. parliament has approved a contentious new subsidy for stay at home parents. opposition parties have criticized this scheme as promoting outdated ideas about families in an age where it's increasingly common that both parents work. >> after months of intense debate, the measure nearly passes. it was far from clear whether the subsidy would pass. chancellor angela merkel had faced a great deal of criticism from within her own party. from next august, parents to stay at home to take care of their young children will receive a monthly premium of 100 euro rising to 150 euro later. the conservatives tried to portray the subsidy as a peacemaking measure. >> we want to encourage parents of a do not feel they have to justify which model is wrong or right.

ideally, the right model was for the mother and father to agree. that's the best approach for their children. >> supporters call the subsidy an issue of free choice. opponents say it's a return to the past when women were expected to stay at home. they say many families would prefer the state to take on day care duties. >> children from disadvantaged backgrounds will miss out on the quality education and care that they need to develop the skills that will allow them to claim their stake in society. >> the subsidy has overcome the parliamentary hurdle but a legal battle is still likely some several have called the measure unconstitutional. they are planning to take it to the constitutional court. >> let's bring in our political correspondent, simon.

this benefit is going to cost 700 million euro per year. however they going to justify this in the age of austerity? >> the government can afford to do this. tax revenues are up. any such spending plans will detract from efforts to cut borrowing. i think these arguments about child care will go beyond questions of financing. this is an ideological battle. the opposition parties and many people in the wider public view in general will see this as an attempt to pressure women to stay at home with children. the measure has been pushed by the bavarian conservatives, many of whom still see women's in terms of kinder and kucher and kirchen. the bavarian conservatives deny

that. they say it's about lifestyle choices. >> it sounds like you're describing the 1950's. what about this issue in terms of becoming an election issue? >> the opposition says this is a sign the governments are already becoming nervous and they are starting to hand out gifts to entice the voters. in recent days, the governing coalition has been attempting to demonstrate unity but they do have a problem. the smallest coalition party, the free democrats, are trailing badly in the polls. although chancellor merkel's conservatives have strong support, it's possible the governing coalition as it is right now will not continue after next year's election and they are beginning to see the beginning of campaigning. >> simon young, as always, thank you. it was 74 years ago today that

the not as the regime launched their campaign -- nazi campaign. even 7 taking place across germany. in 1938, they attacked jewish businesses, said synagogues on fire, and murdered dozens of jews and what became known as crystalnacht. exactly 23 years ago, berlin with the focus of the world media after communist leader in east germany ordered the opening of border crossings to the west, a move that led to the fall of the berlin wall. the memorial was led on friday in a tribute to those who lost their lives at the wall who divided east and west for almost three decades. >> free to travel after the collapse, it seems many of those

who left are now coming home. >> this is where her dreams came true. after years of working for a five-r hotel in hamburg, she ditched the hustle and bustle of the big city and returned to her roots where she has opened up from small hotel. >> when i saw this place, i just know i had to come back. i was on maternity leave and i had spent the summer out here. my first break away from work. i said, this is it. let's go. >> business at the hotel is up where she runs a staff of four. hers is a blueprint for success

common to many of to printers in eastern germany. -- want to print your -- entrepreneurs in eastern germany. >> be used to be dead. lots of people came. we turned it around. a lot of the locals come here to talk and hang out, have a cup of coffee or beer. they're happy that we're here. >> consulting agencies have popped up all across eastern germany, like this one, at home in brandenburg. they help compatriot settled back in. the new east germans are giving the region a much needed makeover. clucks of this kind of brain and is immensely rewarding for the region. -- brain gain is rewarding. the have learned new languages

and it is putting a whole new perspective on this. >> have a well-educated workers is priceless. for people like nadine, being close to family and breeding that familiar country air is part of what helps them come back. she is taking her kids to visit their grandmother. she can draw by unannounced any time of day. for many who decide to return, it is small things like this that make it all worthwhile. >> it's just great to know that you're not on your own, that your family has your back and they are always there for you. when i want a break, they can go to my mother's and it's like a holiday. >> moving east comes at a cost. wages are lower than in western states. nadine would probably have made

more money if she had kept her job at the five-star hotel. being able to combine her job and family here is a price she's happy to pay. >> ever professional musician and his expected to be able to read from a sheet of music but that is no longer the case. >> the brussels philharmonic orchestra has been the first to say goodbye to traditional sheet music and hello to tablets. the orchestra's as the digital displays will save them thousands of euros each year. ♪ >> unless the screen saver comes up in the metal. [laughter] >> is electricity cheaper than a paper? >> apparently. >> coming up after the break, we look at china.

we're going to look at the communist party and ushering in a new set of leaders. how did the superpowers, u.s. and china, relate to each other? >> rockbridge short break. stay with us. >> you decide what you want to watch, the images, the programs, the whole package. dw on the internet. the media center on dw.de. >> the south pacific, and also underwater world that is under threat. it this is the home of a young

animal. >> i want to tell you my story about where i live and why my species is in danger. >> the interactive on-line documentary film. >> you can find me on www.dw.de/globalideas. >> welcome back. the current president has promised both political and economic reform. it shows consumer spending is on the rise. retail spending was up 15% compared to one year ago. >> industrial output is always up and prices are no longer rising as fast as they were. consumer inflation have fallen to its lowest level in nearly three years. >> china is on its way to overtaking united states as the world's largest economy.

>> u.s. warships on route to the pacific. by 2020, the one to station 60% of the navy there. they want to pull back from other parts of the world. they're responding to the chinese a rapid buildup of arms and they are already warning of tensions. >> if one keeps dreaming china as a particular military opponent, one should not be surprised when china starts developing into this world. both sides should do their utmost to avoid such a scenario. >> one source is the chinese trade route. the u.s. navy will extend support to taiwan and other neighboring countries, a move with other motives. >> it's also about economic interests and ultimately securing jobs for both countries. >> pressing issues for the u.s.,

which continues to lose a major employers to china, cheap labor and an undervalued currency are fuelling chinese exports. that's why the u.s. wants to see an end of the artificially low value of the yuan. >> china deliberately keep the value alone. the noticed -- they say their companies are not yet fit to hold up against the world market. it has valued at 20% alone. they want to get there a bit by bit. >> too far for u.s. which feels the pressure of a crushing debt with china as its main creditor. the chinese central bank holds u.s. bonds worth more than $1 trillion in. that puts beijing in an unprecedented position of power which cannot use. if they sold these bonds, it would put washington under pressure.

it would also harm chinese interests. it would see the value of its own investments tumbled. the fact that the western world 's #one superpower should find itself financially dependent on a communist state is one of the trials and tribulations of history. hopefully, there will be positive endings. >> there's i hope that washington and beijing could put an end to it this and focus more on common ground. >> a renewed labor conflict could be brewing in germany. new figures published look to fuel tensions over wage levels in the european leading economy. >> top managers have seen wages increase at but workers have seen their real wages shrink considerably. >> it must be nice being the

boss in this global what economy. you get to tell people what to do and you get paid well. but for those working poor you, chances are it's got worse. global competition is putting down wages and as a consequence, the income gap is widening. since 2005, executive salaries have shot up 14%. adjusted for inflation, that as 4%. skilled labor has been a 6% increase in adjusted for inflation, they have effectively got to a 4% salary decrease. with this development is caused by reticent labor unions and a shift towards poorly paid a service sector jobs. the limited salary increases make it easier and cheaper for german companies to compete in a global market, a reason why germany has weathered the debt crisis so well. >> german insurance giant

allianz has exceeded third quarter expectations with a rise in profits. despite natural disasters like super-storm sandy, they have reason overoptimism. the hurricane caused billions of euros of damage as it struck the east coast of the united states last week, but they firmly believe they will be meeting profit targets for 2012. >> was the longest-running dispute in the history of the world trade organization, but what came to be known as the banana war has been declared over. the head of the wto has declared the dispute resolved. >> the original complaint was started by toaster -- back in 1991 in the conflict took over two decades to sort out -- the complaint was started by costa rica.

>> the vast majority of bananas are produced on a massive scale by u.s. multinational companies. the fruit is a vital export for countries like coaster rica, colombia, ecuador. only 12% of the bananas consumer actually grown there. 18% come from africa, the caribbean, and the pacific. on tall now they have received preferential treatment with prices above global markets read. 70% come from central and south america. that is now changing. the import tariff is to be reduced by 300 per ton over the next five years likely to mean lower prices for consumers. >> 11,000 syrians have fled their country in just the past 24 hours. >> the united nations says it is one of the largest exodus is

seen in the recent times and it is adding pressure on the opposition. >> united states and qatar are coming together to bring a body that could serve as a government if assaad falls. >> syrian opposition politicians refused to comment on the conflict or the reported fractures between groups. the u.s. and watar are pushing them to unite. it is seen as key as and sharing for the support from the international community. the syrian national council is reluctant to cede influence. in the past, they have put themselves forward as a mouthpiece for the whole opposition. it is seen as increasingly out of touch with the rebels on the ground within syria. the uprising is being fought by a vastly different religious groups, muslims, liberals, kurds, etc.

it reflects the syrian society. one-third of the council members are islamists and they are facing criticisms for not being representative enough. the meeting is aimed at breaking the deadlock and forming a political assembly that could represent a unified position. the west has called on all parties to form a viable transitional government that would be ready to take power if/when assaad falls. "still to come, mass protests on the streets of buenos are as. why argentinian was do not want their presidents anymore. >> hundreds of the tibetans have taken the streets in china protesting against human rights violations and calling for the return of their exiled spiritual leader, the dalai lama. the latest demonstrations following a number of incidents in which the tibetans have let

themselves on fire in protest of chinese rule. the gunman who killed six people and seriously wounded a u.s. congresswoman has been sentenced to life in prison. gabrielle giffords survived being shot at point-blank range. she faced jared loughner in court as he was given seven life terms total. >> the church of england named their new spiritual head. he will be enthroned as the archbishop of canterbury. he is a former executive from the oil industry. he will become the leader of the more than 77 million anglicans worldwide next march. >> it is the biggest protest argentina has seen in a decade and the anchor is aimed out their president. >> one and a half million people filled the streets of the capital, buenos eras, but protesting political corruption and inflation.

they are enraged by rumors that the president wants to amend the constitution to allow her to serve a third term. hundreds of thousands of protesters take to the streets banging pots and pans. they say the government is mismanaging the economy and they are fed up with rising crime. they say government is asking -- acting unconstitutional. >> there is no justice. without it there is an security. there's no health care, nullification, no nothing. we demand respect. we demand to be heard. >> argentina's economy has been slowing down. growth has fallen sharply and inflation is igh. the president of argentina has supported business at home with trade and foreign exchange restrictions. those protectionist measures hundred and foreign investors away. her party blame today's protests

on right wing groups. many demonstrators say they were not affiliated with any group. they were only there because of the economy. "germany is gearing up for a game against their dutch neighbors. >> the coach has a few surprises up his sleeve. the cambered goalkeeper will start guarding the posts. he was out with an injury last year but he is back in full force this season. he had a strong bundesleague performance. >> more news at the top of the hour.